Faculty Syllabus

Grading System:  Course evaluation will be based on TWO (2) exams:

Exam I: covers the first half of the course (30 questions worth 4 points each for a total of 120)

Exam II: covers mostly (with the exception of several topics on both tests) the    second half (same format, 120 points)

Final course grade*:

            A         180 points (90 or better average)

            B          160 points (80-89 average)

            C         130 points (65-79 average)

D         100 points (50-64 average)

F          below 100 points (< 50 average)

F

Borderline cases (D+ and C+) can be moved up one letter grade (C and B)

based on attendance and improvement.  Students who score 90 or above       on exam I, and score less than 90 on exam II, will be graded based on           points (see above).

*Both exams contain a built in 20 point curve (total possible 240 points).  However, 180/240 = A, 160/240 = B etc.

Text (Required):  Microeconomics (14th), Roger Arnold

Instructional Methodology:  The test material (curriculum) is presented using (1) lectures, and (2) handouts.  

Instructional Videos: Khan Academy and Arnold (see last page).

Course Description:   Principles of Microeconomics deals with the interactions between individual households and business firms. The concepts of markets, supply and demand will be studied; students will learn what these concepts mean, how they operate, and how prices are determined. Market structure, market failure and income distribution will also be considered.

Review Questions     

Econ 3201/3202

Exam I

The exam covers the following review questions.  To study for the test, you should write out the answers to these questions from your class notes, before the exam.  

1.         Define Science, Scientific Method, and Theory, and how do they fit together?  What are Laws, Principles, and Beliefs.  What is a model?

2.         Define and give examples of Opportunity Cost, MB, MC, and the Optimization Principle.

3.         Define and give examples of Positive and Normative statements.

4.         What are the “Common Fallacies”?

5.         What are Production Possibilities Curves, and which type of costs are involved?  What are the assumptions and conclusions regarding the two cases?  These curves can be useful in what type of analysis?

6.         Market Analysis:

            a.         Distinguish Demand fromQuantity Demanded.

            b.         Law of Demand vs. Shift Variables.

            c.         Distinguish Supply from Quantity supplied.

            d.         Law of Supply vs. Shift Variables.

            e.         What are Peand Pm?

            f.          Price floors andceilings.

            g.         Surplus and Shortages.

            h.         What are the four Market Possibilities.

7.         Be prepared to make predictions concerning Markets and Events similar to The Work Sheet using graphs.

8.         What are the requirements for Perfect Competition according to Smith and

            Slivinske?  What is the definition of Effective Competition?

9.         What are Smith’s “Law of Accumulation” and the “Law of Population”, and  how do they produce Economic Growth?  What parts of the theory are true today according to your professor?

10.       Based on your professor’s theory, what are the connections between the Protestant  Reformation (16thcentury), and the Industrial-Scientific Revolution (18th century)?

11.       Contrast and compare the Political Economy of Mercantilism, with the Laissez- Faire system of Adam Smith.

12.       What has caused the exponential growth in World Population since 1750 according to Dr. Al?

13.       Explain the Malthusian Population Theory including the “checks” on population,   and what was his major misunderstanding (i.e. failed assumption).

14.       Demographic Transition Model:

            a.         What are the areas of the World in each stage?

            b.         What are the population growth rates for each stage?

            c.         What are the comparative economic developments for the stages?

            d.         What factors lead to the decline in CDR’s and CBR’s in stage II and IV

                        respectively?

            e.         What are the differences between Developing, and Developed countries with respect to their Demographic experiences? 

Review Questions

Econ 2302

Exam II

The exam covers the following review questions.  To study for the test, you should write out the answers to these questions from your class notes, before the exam.  Then, you need to take the old tests as practice exams.

Demand Theory

1.         Define Utility

2.         Distinguish between Cardinal and Ordinal Utility

3.         Demonstrate your understanding of the Principle of Diminishing Marginal

            Utility.  How is it related to the Demand Curve?

4.         What is the Equal-Marginal Principle (equation) and what does it show.

5.         Define and be able to use “Al’s Law” of Utility Maximization

6.         Derive and graph a budget constraint for two goods.  What are the maximum amounts of each good that you can purchase?

7.         What is the Market Rate of Substitution (equation)?

8.         What does an Indifference Curve show?  What are the four conditions for  Indifference Curves?

9.         What are the two special cases of Indifference Curves?

10.       What is Consumer Equilibrium using both the graph and equation according to

            Dr. Al?  What is the “Principle of Diminishing Marginal Rate of Substitution”?

Supply Theory

11.       Identify the Market Structure for Perfect Competition (PC) and Monopoly (Dr. Al’s version)

12.       What are the Time Periods and how do they relate to (1) the production function, and (2) entry and exit of firms?

13.       What does п = TR-TC represent, and what is a NROR?

14.       What is the difference between Accounting TC and Economic TC?

15.       Define the following concepts:

            Q or TP, AP, MP, TC, TVC, TFC, ATC, AFC, AVC, MC, P, D, d, TR, AR, MR, Break-Even, п

16.       Define and be able to use Al’s Rules of Profit Maximization for PC and Monopoly

17.       What are the three S-R operational profit (loss) possibilities for PC?  Monopoly?

            What is the non-operational situation for both market structures?

18.       What is the L-R solution for both market structures?

19.       When do firms enter/exit markets?

20.       What is the relationship between MR and P for both types of market structure?  Compare Price Taker to Price Searcher (Maker)?

21.       Identify the Supply Curves for firms in (1) PC, and (2) Monopoly

22.       Compare the outcomes of PC to Monopoly

23.       Price Discrimination:

            a.         Definition

            b.         Legality

            c.         Reason or purpose

            d.         Conditions

24.       Be able to define and use:

            a.         Elasticity (Price elasticity of demand)

            b.         Elastic, Unitary, and Inelastic Demand

            c.         Elasticity (ed) and TR

            d.         Factors effecting ed

25.       What are the key elements of market structure?

26.       What are the various measures of concentration, and how are they measured?

27.       What are the types of mergers?

28.       What are the major Anti-Trust Laws, and which sections prohibit various    business behaviors 

ECON 2302

Principles of Microeconomics

Spring 2025

A. J. Slivinske, Jr., Ph.D.

Course Information: 

Principles of Microeconomics

ECON 2302-015

ECON 2302-009

ECON 2302-026

Instructor Information:

Professor: A. J. Slivinske, Ph.D.

Office  TBA, and NRG F 8-11, by appt.

Phone              223-4765

Email               alslivin@austincc.edu. (use your ACC email for communicating with me)

Course Description:   Principles of Microeconomics deals with the interactions between individual households and business firms. The concepts of markets, supply and demand will be studied; students will learn what these concepts mean, how they operate, and how prices are determined. Market structure, market failure and income distribution will also be considered.

Text (Required):  Microeconomics (14h), Roger Arnold

Instructional Methodology:  The test material (curriculum) is presented using (1) lectures, and (2) handouts.

Instructional Videos: Khan Academy.

Course Rationale:  This course is meant to give students insight into the dynamics of a market based economy and how through its mechanism scarce resources are allocated. The theoretical and actual role of the government in this market system will also be addressed. The knowledge gained in the course will make students better-informed citizens and allow them to follow the debates over various economic events and policies reported in the news media. This course is also a foundation course that will prepare students to be successful in upper division finance, marketing, business administration, economics, government, and social work courses.

Common Course Objectives/Student Outcomes  (as established by the economics department):  Students who complete this course will be able to understand:

• the basic concepts of scarcity and opportunity cost;
• the forces of demand and supply and how they interact to determine an equilibrium price;
• how and why equilibrium prices might change and their impact on resource allocation;
• the theory of consumer behavior;
• the theory of the firm;
• the theoretical market structures of perfect competition and monopoly.

Objectives/Outcomes  (established by the instructor):  See Review Questions

Grading System:  Course evaluation will be based on TWO (2) exams:

Exam I: covers the first half of the course (30 questions worth 4 points each for a total of 120)

Exam II: covers mostly (with the exception of several topics on both tests) the       second half (same format, 120 points)

Final course grade*:

A         180 points (90 or better average)

B         160 points (80-89 average)

C         130 points (65-79 average)

D         100 points (50-64 average)

F          below 100 points (< 50 average)

Borderline cases (D+ and C+) can be moved up one letter grade (C and B)

based on attendance and improvement.  Students who score 90 or above    on exam I, and score less than 90 on exam II, will be graded based on       points (see above).

*Both exams contain a built in 20 point curve (total possible 240 points).  However, 180/240 = A, 160/240 = B etc.

Course Policies:  Attendance is Required.  You are expected to withdraw if you cannot keep up with the material (although I reserve the right to withdraw the student for failure to show progress etc).  Since I will provide most of the course curriculum in class, you will not perform well if you miss class.  Make-up exams are given, only with prior approval by notification of the professor before the exam date.  Any material missed due to absences is the student’s responsibility to make up.

Material presented in class is either:

            1.         important and on the tests (see review questions)

            2.         important and not on the test but is something college students

                        should know.

Scholastic Dishonesty: Acts prohibited by the college for which discipline may be administered include scholastic dishonesty, including but not limited to cheating on an exam or quiz, plagiarizing, and unauthorized collaboration with another in preparing outside work. Academic work submitted by students shall be the result of their thought, research or self-expression. Academic work is defined as, but not limited to tests,

quizzes, whether taken electronically or on paper; projects, either individual or group; classroom presentations, and homework.

Students with Disabilities: Each ACC campus offers support services for students with documented physical or psychological disabilities. Students with disabilities must request reasonable accommodations through the Office of Student Accessibility Services (SAS) on the campus where they expect to take the majority of their classes. Students are encouraged to do this three weeks before the start of the semester.

ACC Concealed Handgun Policy Online:

            http://www.austincc.edu/campus-carry

Course Outline/Exam Dates:

 I           Introduction (text ch 1 & Appendix A; ch 2)

                     A         Course requirements and Objectives

                     B         Basic core topics

                     C         Production Theory

II         Market Analysis (text ch 3-5)

                        A         Demand Theory

                        B         Supply Theory

                        C         Market Equilibrium/Disequalibrium

                        D         Market and Events (applications)

III        Adam Smith and Classical Economics (handouts)

                        A         Perfect Competition

                        B         Economic Growth

                        C         Economics History

            IV        Economics Growth and Population (handouts)

                        A         Malthusian Model

                        B         Demographic Model

Exam I            March 12-13

            V         Demand Theories (text ch 7 &  Appendix C)

                        A         Economics Demand Theory

                        B         Marketing Consumer Choice Models

            VI        Theory of the Firm and Supply (text chs 6,8,9,10)

                        A         Perfect Competition and Reality

                        B         Monopoly and Imperfect Competition

                        C         Elasticity and Revenue

                        D         Business Conduct (price discrimination etc)

VII      Market Structure, Industrial Organization, and Anti-Trust (text ch 12)

                        A         Measures of Market Structure

                        B         Mergers

                        C         Anti-trust Law

                        D         Applications (Microsoft, etc)

Exam II           May 14-15

Study Tips for Improving Your Grade:

                        1.         Write out answers to Review Questions

                        2.         Study groups

                        3.         Study each week, rather than cram at the end

                        4.         Highlight notes, and reduce to cards important concepts

                        5.         Review previous days class note before the next class